Mumbai: The Reserve Bank will release by this month end detailed guidelines on "banking outlet", aimed at covering the under-served areas.
These will supersede the branch licensing guidelines in force, RBI said in its first bi-monthly monetary policy of 2017-18 today.
"Final guidelines are proposed to be issued on banking outlets, clarifying on what is a 'banking outlet' and harmonising the treatment of different forms of bank presence for the purpose of opening outlets in under-served areas," it said.
This bank authorisation scheme is one where RBI is moving away from emphasis on brick and mortar branch to fixed locations where banking service is available, RBI Deputy Governor N S Vishwanathan said.
"This will enable banks to provide cost efficient service. Cost efficiency is more important to facilitate financial inclusion and we believe that this is going to result in further propping up to the financial inclusion measures by the banking industry in general," he said after the policy announcement.
RBI's branch licensing guidelines, while considering applications for opening branches, give weightage to the nature and scope of banking facilities provided by banks to common persons, particularly in under-banked areas.
It also takes into account actual credit flow to the priority sector, pricing of products and overall efforts for promoting financial inclusion.
